Books Inc. Seeks Fresh Start with Chapter 11 Bankruptcy Filing

Books Inc., a cherished Bay Area bookstore chain, has voluntarily filed for Chapter 11 bankruptcy protection, aiming to stabilize its financial footing amid mounting operational costs and shifting consumer habits exacerbated by the COVID-19 pandemic. The filing, announced this week, marks a strategic effort to sustain the company while adapting to the evolving retail landscape.

The bookstore chain’s leadership emphasized that Chapter 11 will enable Books Inc. to continue operations across its ten remaining locations while restructuring key financial aspects. As part of the process, the company will close its Berkeley store on February 9, with some employees being reassigned to nearby branches. The other locations will remain open during the restructuring period.

In the filing, Books Inc. revealed financial challenges that have persisted since the pandemic’s peak. The company’s revenue, which stood at $20.9 million in 2020, has declined to $17.1 million in 2024. Despite efforts to regain stability, rising costs related to rent and payroll have strained the business further. The retailer holds an estimated $1.9 million in trade book inventory and faces approximately $1.8 million in outstanding debt.

A key element of the reorganization plan involves negotiating lease agreements to better align with current sales trends and foot traffic patterns. If favorable lease terms cannot be reached, additional underperforming stores may face closure. Currently, Books Inc. employs around 122 staff members, all of whom are impacted by the company’s restructuring efforts.

CEO Andy Perham remains optimistic about the company’s future. In a statement, he reassured customers and stakeholders: “Books Inc. is not going away. Our board, investors, senior managers, and key partners believe that Chapter 11 provides us the best opportunity to emerge stronger and more resilient. While difficult decisions lie ahead, our commitment to serving California readers remains unwavering.”

Perham acknowledged the challenges ahead but praised the dedication of Books Inc.’s employees and management, highlighting their pivotal role in shaping the company’s next chapter. The restructuring plan aims to create a leaner, more sustainable business model that allows the beloved bookstore chain to continue serving its loyal customers.

As the restructuring unfolds, Books Inc. promises to keep customers informed and engaged, encouraging support from the community during this pivotal period. Readers and book lovers alike are hopeful that the storied bookstore will overcome its financial struggles and continue to be a cornerstone of the literary community for years to come.